Advisors: Guidance, policy changes needed to support caregivers

Most financial advisors (85%) are working with clients who have caregiving responsibilities, according to a study from Edward Jones in partnership with Morning Consult. And an even greater number of advisors (88%) agree that caregiving is more financially challenging than their clients expected.

So, what are some of the most common financial challenges often faced by caregivers?

According to Ken Cella, principal and head of external affairs at Edward Jones, caregiving is not only emotionally taxing, it can be financially challenging as well. “Our recent study identified rising costs and inflation (56%) and inadequate retirement savings (42%) as the most common financial challenges that caregivers face today,” Cella said. “A story we hear all too often is that caregivers need to dip into their own retirement savings simply to keep up with these rising expenses, which jeopardizes their financial security.”

The impact of these challenges

Caregiving comes with real, unexpected consequences, Cella said. “Our study found that nearly all caregivers (95%) have some level of financial concern for their retirement. It’s common for
caregivers to make financial sacrifices to ensure they are providing the best care possible for
their loved ones. In fact, the survey found half of caregivers (51%) have had to cut back on
personal spending due to their caregiving responsibilities,” he added.

Some caregivers are even willing to sacrifice their own careers to ensure proper care for their recipients. This could mean stepping away from their jobs entirely or reducing the number of hours they work, resulting in less pay, decreased savings and losing access to benefits. “These lasting financial and career impacts could take years to recover from,” he said.

Call for legislative changes

Cella added that when Edward Jones surveyed financial advisors, an overwhelming majority (88%) of them agreed that caregiving is more financially challenging than their clients expected. They also agreed that those in this essential role are not only at a financial disadvantage, but the government is also not providing them with the support they need to achieve their long-term financial goals. As a matter of fact, Cella said, more than two-thirds of Americans (68%) overall feel the government is not doing enough to support caregivers.

Cella added that Edward Jones is proud to support the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act. These acts are sponsored by Sens. Susan Collins, R-Maine, and Mark Warner, D-Va., and Reps. Brittany Pettersen, D-Colo., and Maria Elvira Salazar, R-Fla., to help the millions of Americans who provide caregiving services to family and friends. Cella said these bills would build on the success of the SECURE 2.0 Act by providing additional savings opportunities to caregivers.

Helping caregivers navigate their challenges

So, what can financial professionals do to help caregivers navigate these challenges, support their loved ones, and still make meaningful strides towards securing their financial future? Achieving financial stability takes time, Cella pointed out. It isn’t an overnight process. Financial professionals can help caregivers navigate these challenges by guiding them step by step to make thoughtful choices and help them stay committed to their long-term goals. He pointed out that nearly all caregivers who work with a financial advisor (93%) report feeling more confident about their financial future.

The data speaks for itself when it comes to proving the value of a financial advisor specifically. Financial advisors should be viewed as a utility player on a sports team, playing several positions competently, Cella added. “Financial advisors provide a wide array of support, education and resources. They can work with caregiver clients and help connect them to the right resources. This can help caregivers support their loved ones while making meaningful strides toward securing their financial future,” he said.

Tools to support caregiving clients

The study pointed out that advisors are an important resource for caregivers because they support clients who are navigating caregiving responsibilities and they can help ease the financial burden—whether through retirement savings tools, insurance policies or government assistance programs.

In fact, according to the study, half of the financial advisors surveyed agreed that the following tools are some of the most effective when advising caregiving clients:

• Health Savings Accounts (HSAs) (51%)
• Long-term care insurance policies (51%)
• Roth or traditional IRA strategies (50%)
• Government assistance programs (50%)

The survey was conducted by Morning Consult among a national sample of 205 financial advisors from February 28, 2025 to March 11, 2025. In this study, “caregiving,” refers to unpaid care and support provided to a young child, family member, or friend due to age, illness, disability, or other needs. This may include helping with daily activities, managing finances, providing transportation, or offering emotional support.

 

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